Frequently asked questions
How the calculators work, what the numbers mean, and where outside reference data fits.
Are these market-price calculators?
No. The pricing calculators are designed to calculate a price from the business costs, fees and profit target entered by the user. When a calculator shows a regional reference, it is labeled separately and does not silently replace the user's actual costs.
What is the difference between markup and profit margin?
Markup adds a percentage to cost. Profit margin measures profit as a percentage of selling price. A 30% markup does not produce a 30% profit margin. The pricing engine works backward from the target margin when that is the selected methodology.
Why is owner compensation separated from profit?
If the owner performs labor on a job, treating that labor as free can overstate profitability. The calculators can treat desired owner compensation as a cost of performing the work, leaving profit as the amount that remains after that compensation and other entered costs.
What does the ZIP code do?
ZIP lookup is optional. It can identify regional context and display a location-adjusted labor reference. It does not claim to know the exact local selling price for a service.
Should I use the regional labor reference or my real payroll cost?
If you know what labor actually costs your business, use your real number. Regional data is a starting reference for users who need context.
Do calculator inputs get saved?
Phase 1 calculations run in the browser and do not require an account. The site does not intentionally send calculator values to a Service Biz Calculators database just to perform the calculation.
Are the results guaranteed?
No. Results are mathematical estimates based on the information entered and the disclosed methodology. They cannot guarantee a market price, customer acceptance, future costs or actual profit.
Where can I see the data sources?
See the Methodology page. Calculators that use external reference data also display the source and data period near the result.
How can I report a problem?
Use the Contact page and include the calculator name and enough detail to reproduce the issue.